Sycamore says earnings will be down
Sycamore Networks Inc. said Monday its third-quarter revenue is expected to fall short of Wall Street expectations due to lower-than-planned orders by a major customer, according to preliminary financial results.
Shares of the Chelmsford company plunged 59 cents, or 15.8 percent, to $3.15 in premarket trading, having closed Friday at $3.74. The stock has traded between $3.21 and $4.35 during the past 52 weeks.
For the quarter ended April 26, Sycamore expects revenue to drop roughly 52 percent to about $21 million, from $43.5 million in the prior year. Analysts surveyed by Thomson Financial forecast quarterly revenue of $45.7 million.
The telecommunications equipment maker said lower-than-expected orders from a key customer was the biggest factor hurting third-quarter revenue results. The unexpected shortfall is expected to affect the company's 2008 objective to match or exceed 2007 revenue.
"We are disappointed with our third-quarter revenue level, which reflects the challenges and unpredictability associated with a highly concentrated customer base," said Daniel E. Smith, the company's chief executive.
Sycamore expects to report final third-quarter results at the end of May.
(AP)
